No 'credit event' in Greece, ISDA rules

Against i thought would be the announcement that the CDS finally triggered, ISDA makes a setback and said there is no credit event in Greece... we add ...yet.

Maybe will never be declared the credit event in the case of Greece because that would be considered as a precedent for next voluntary exchange of debts, namely Portugal, Irelnd or Spain.

I expect Ireland and Portugal  will ask equal conditions for his debt once Greece reach the agreement with the IIF.

By Reuters
March 1 (National Post) -- LONDON - Greece has not triggered a payout on credit default swaps by its recent moves to prepare for a debt restructuring, the International Swaps and Derivatives Association said on Thursday. 

The ruling means holders of these insurance contracts, worth a net $3.25 billion, will not receive payment at this stage, though further rulings based on any new questions are still possible.

The committee was asked to consider whether a 'credit event' had occurred as a result of new Greek legislation that could force all bondholders to accept losses and after the European Central Bank took steps to avoid losses on its Greek bonds.

The 15 ISDA committee members voted unanimously that this did not meet the ISDA definition of a credit event. 

© Thomson Reuters 2012